A Production Run of 500 Items Resulted in 29 Defectives $\mathrm { K } = 0.058$

question 62

Multiple Choice

A production run of 500 items resulted in 29 defectives items.A defective item is coded as 1 and a good item as 0.The following is an output from Minitab.
Runs Test: Defects

Runs test for Defects

Runs above and below $\mathrm { K } = 0.058$

The observed number of runs $= 57$
The expected number of runs $= 55.636$
29 observations above K, 471 below
$\mathrm { P } -$ value $= 0.574$
Using $\alpha$ =0.1, the conclusion is __________________.

• A)successive items did not constitute a random sample.
• B)reject the hypothesis that successive items constituted a random sample
• C)do not reject the hypothesis that successive items constituted a random sample
• D)reject the hypothesis that successive items constituted a random sample.
• E)the distribution is binomial

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Definitions:

Revenue Account

A record that monitors the revenue a firm produces through its regular business activities.

Trial Balance

A financial report that lists all the accounts with their balances at a specific date, used to verify the equality of debits and credits in the bookkeeping system.

Ledger Accounts

Individual records that summarize all the financial transactions regarding a specific aspect of a business's financial activity, such as sales, accounts payable, or owner's equity.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal, serving as a preliminary step to financial statement preparation.